filings.toolsItem 9B. OTHER INFORMATION
9K characters. Original on sec.gov · Markdown
Item 9B. OTHER INFORMATION
Immaterial Correction of Interim Condensed Consolidated Financial Statements
In connection with our fiscal year-end close process, we identified that we did not timely record shrink losses for certain inventories not ultimately received, which also impacted our bonus accrual, in the first three quarters of fiscal 2024. Therefore, our previously issued interim financial statements for the first three quarters of fiscal 2024 did not reflect these adjustments. We have properly accounted for this matter in our fiscal 2024 annual Consolidated Financial Statements included in this Form 10-K.
Management evaluated the materiality of the above items based on an analysis of quantitative and qualitative factors and concluded they were not material to the interim periods of fiscal 2024, individually or in aggregate. As a result, we plan to prospectively correct the relevant prior period Condensed Consolidated Financial Statements and related footnotes for these items in future filings.
The following tables reflect the effects of the correction on all affected line items of our previously reported Condensed Consolidated Statements of Earnings to be presented as comparative in the Forms 10-Q in fiscal 2025, a 52-week year, ending on February 1, 2026:
| For the Thirteen Weeks Ended | |||||||||||||||||
| (Unaudited) | April 28, 2024 | ||||||||||||||||
| (In thousands, except per share amounts) | As previously reported | Adjustments | As corrected | ||||||||||||||
| Cost of goods sold | $ | 857,833 | $ | 7,347 | $ | 865,180 | |||||||||||
| Gross profit | 802,515 | (7,347) | 795,168 | ||||||||||||||
| Selling, general and administrative expenses | 478,687 | (631) | 478,056 | ||||||||||||||
| Operating income | 323,828 | (6,716) | 317,112 | ||||||||||||||
| Earnings before income taxes | 339,881 | (6,716) | 333,165 | ||||||||||||||
| Income taxes | 74,215 | (1,466) | 72,749 | ||||||||||||||
| Net earnings | $ | 265,666 | $ | (5,250) | $ | 260,416 | |||||||||||
| Basic earnings per share | $ | 2.07 | $ | (0.04) | $ | 2.03 | |||||||||||
| Diluted earnings per share | $ | 2.03 | $ | (0.04) | $ | 1.99 |
| For the Thirteen Weeks Ended | For the Twenty-six Weeks Ended | ||||||||||||||||||||||||||||||||||
| (Unaudited) | July 28, 2024 | July 28, 2024 | |||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | As previously reported | Adjustments | As corrected | As previously reported | Adjustments | As corrected | |||||||||||||||||||||||||||||
| Cost of goods sold | $ | 961,981 | $ | 22,386 | $ | 984,367 | $ | 1,819,814 | $ | 29,733 | $ | 1,849,547 | |||||||||||||||||||||||
| Gross profit | 826,326 | (22,386) | 803,940 | 1,628,841 | (29,733) | 1,599,108 | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 536,410 | (10,370) | 526,040 | 1,015,097 | (11,001) | 1,004,096 | |||||||||||||||||||||||||||||
| Operating income | 289,916 | (12,016) | 277,900 | 613,744 | (18,732) | 595,012 | |||||||||||||||||||||||||||||
| Earnings before income taxes | 305,124 | (12,016) | 293,108 | 645,005 | (18,732) | 626,273 | |||||||||||||||||||||||||||||
| Income taxes | 79,379 | (3,126) | 76,253 | 153,594 | (4,592) | 149,002 | |||||||||||||||||||||||||||||
| Net earnings | $ | 225,745 | $ | (8,890) | $ | 216,855 | $ | 491,411 | $ | (14,140) | $ | 477,271 | |||||||||||||||||||||||
| Basic earnings per share | $ | 1.76 | $ | (0.07) | $ | 1.69 | $ | 3.83 | $ | (0.11) | $ | 3.72 | |||||||||||||||||||||||
| Diluted earnings per share | $ | 1.74 | $ | (0.07) | $ | 1.67 | $ | 3.78 | $ | (0.11) | $ | 3.67 |
| For the Thirteen Weeks Ended | For the Thirty-nine Weeks Ended | ||||||||||||||||||||||||||||||||||
| (Unaudited) | October 27, 2024 | October 27, 2024 | |||||||||||||||||||||||||||||||||
| (In thousands, except per share amounts) | As previously reported | Adjustments | As corrected | As previously reported | Adjustments | As corrected | |||||||||||||||||||||||||||||
| Cost of goods sold | $ | 958,953 | $ | 24,149 | $ | 983,102 | $ | 2,778,767 | $ | 53,882 | $ | 2,832,649 | |||||||||||||||||||||||
| Gross profit | 841,715 | (24,149) | 817,566 | 2,470,556 | (53,882) | 2,416,674 | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 521,072 | (8,537) | 512,535 | 1,536,169 | (19,538) | 1,516,631 | |||||||||||||||||||||||||||||
| Operating income | 320,643 | (15,612) | 305,031 | 934,387 | (34,344) | 900,043 | |||||||||||||||||||||||||||||
| Earnings before income taxes | 332,445 | (15,612) | 316,833 | 977,450 | (34,344) | 943,106 | |||||||||||||||||||||||||||||
| Income taxes | 83,492 | (3,921) | 79,571 | 237,086 | (8,513) | 228,573 | |||||||||||||||||||||||||||||
| Net earnings | $ | 248,953 | $ | (11,691) | $ | 237,262 | $ | 740,364 | $ | (25,831) | $ | 714,533 | |||||||||||||||||||||||
| Basic earnings per share | $ | 1.99 | $ | (0.10) | $ | 1.89 | $ | 5.81 | $ | (0.20) | $ | 5.61 | |||||||||||||||||||||||
| Diluted earnings per share | $ | 1.96 | $ | (0.09) | $ | 1.87 | $ | 5.74 | $ | (0.20) | $ | 5.54 | |||||||||||||||||||||||
Insider Adoption or Termination of Trading Arrangements
During the fourth quarter of fiscal 2024, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as those terms are defined in Regulation S-K, Item 408.
Adoption of Management Retention Plan
On March 21, 2025, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) adopted the Amended and Restated 2012 EVP Level Management Retention Plan (the “MRP”). The terms of the MRP are substantially identical to the terms of the Company’s 2012 EVP Level Management Retention Plan adopted on November 1, 2012 and last amended and restated effective March 24, 2022 by the Company’s
Compensation Committee, which terms were described in the Company’s Current Report on Form 8-K as filed with the Commission on November 7, 2012.
Amendment to 2021 Incentive Bonus Plan
On March 21, 2025, the Compensation Committee amended and restated the Company’s 2021 Incentive Bonus Plan (the “Amended 2021 Bonus Plan”), previously adopted on March 16, 2021. Pursuant to the Amended 2021 Bonus Plan, the per award period maximum award available to any participant has been increased from $10,000,000 to $12,500,000. No other changes were made to the plan.
Previous: Item 9A. CONTROLS AND PROCEDURES · Next: Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS